RH Stock: A Hidden Opportunity Among Short Sellers?

Published: Sep 12, 2024 Duration: 00:03:18 Category: News & Politics

Trending searches: opportunity economy
[Music] now your in second pick for a stock that  could be a good short squeeze candidate is not in   the AI realm but it's a brand many people are  familiar with right it's RH now the company   the the stock ticker is Rh and the name of the  company is Rh but many investors may know it   better as Restoration Hardware it's a um premium  supplier and manufacturer of Home Furnishings   so obviously as you would expect uh in 2020 and  2021 the company was doing very well the stock was   doing very well as people were buying houses they  were relocating they were renovating the houses   they did have in fact at one point RH stock went  up over $700 a share well yeah it's at 241 right   now so it's gone down significantly since then  and you would expect that for all of the reasons   that we talked about now the housing market  is is tighter people who have looked to do   Renovations on their home have already done  it others that might be looking to do larger   Renovations might be holding off waiting for  more favorable interest rates waiting for   inflation pressures to come down that's where the  opportunity May lie we have a we have a Federal   Reserve that is likely to cut interest rates  when they meet next week that may not trickle   down to Consumers right away but it is expected  that if that happens you might start seeing some   loosening up in the housing markets in any  event the stocks tend to precede the overall   Market by six to n months so now might be an  interesting time to get in on RH and if that   stock does if the company does happen to improve  their earnings Outlook because right now revenue   is about it 2019 levels so it's not too bad and  it's about where investors might expect to see it   the problem is that right now the company their  earnings have been negative because the as a   company they're facing the pricing pressures that  are coming from Supply chains and inflation and   all that if that turns around you could see the  stock start moving up higher and again it might   be an interesting short squeeze candidate now  does every short squeeze have to happen with   that fan following like we saw in gain stop or  can it happen by the kind of economic factors   you just talked about yeah I think it can  be it can be either one in fact I think what   made GameStop so unique was the fact that the  short squeeze happened in absence of any real   fundamental reason for it happening it was sort  of a Mania and again that's that's not to judge   it one way or the other it's just to say it did  happen without any fundamentals many short squeez   happened because of some fundamental Catalyst  and it's also important to note that many short   squeezes never get to the level where GameStop  as which is again what made GameStop so unique [Music]

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